Fiserv, Amadeus, Shift4 Vie to get Payments: Source, Ettravelworld

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Fiserv and IT group Amadeus are competing to acquire a payments processor with a market value of about $7 billion, according to people familiar with the matter.

Fiserv and Amadeus are the two main rivals that Shift4 works with and are preparing to present final offers in recent weeks, sources said, adding that the deal is not certain.

The sources declined to discuss the terms of the offers and requested anonymity because the matter is confidential. Shift4 and Fiserv did not immediately respond to requests for comment. Amadeus declined to comment.

Shares of Shift4, which is about 8 percent this year, jumped up to 13 percent on the news.

Shift4 collects fees from restaurants, casinos and hotels, sports teams like the San Francisco 49ers, and customers to facilitate their payments. According to its website, it handles more than $200 billion in annual transactions for more than 200,000 clients.

Like customers, 7 of the payment processors surveyed during the pandemic have struggled to maintain growth amid increased competition and high inflation.

Earlier this week, Shift4 reported fourth-quarter earnings and forecast a strong outlook for 2024, with revenue and earnings forecasts ahead of market expectations.

EasyMyTrip’s corporate customer will get seamless access to Zaggle’s EMS platform, offering end-to-end travel and expense management solutions. This includes booking flights, hotels and other travel arrangements, as well as managing expenses incurred during travel. The partnership aligns with the growing demand for sound expense management solutions driven by corporate travel.

Shift4 CEO Jared Isaacman said in a letter to shareholders in November that the company was exploring “strategic opportunities and alternatives.” In media interviews since then, Ishacman has said the central Valley, Pennsylvania-based company has received interest from several parties, without naming them. If successful, the acquisition of Shift4 will be the ultimate deal in the financial services sector. Recent transactions include Capital One’s US$10.5 billion acquisition of ADENZA and GTCR’s US$35 billion to acquire a majority stake in GTCR valued at US$18.5 billion.

Fiserv, which had an initial public offering of $22 billion in 2019 and a market capitalization of $89 billion, provides technology services to help trading operations and other companies conduct transactions.

Spain-headquartered Amadeus, with a market value of approximately €27 billion ($29.2 billion), is a technology provider focused on Travel Software Systems and Counts Airlines, Railways, Business Travel Agencies and Tour operators among its customers. A deal for Shift4 will complement the company’s travel booking tools.

Amadeus’ fortunes retreated after widespread travel bookings fell during the pandemic. Earlier on Wednesday, Amadeus said this year will increase between 11 percent and 14.5 percent to 14.5 percent.

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